A piece of equipment has been purchased by the city for Rs. 10,000 with an anticipated salvage at Rs. 500 after 8 years. Which of the depreciation models will yield the greatest reduction in the book value of the equipment?

Sum-of-years digits depreciation

Declining balance depreciation is switched to straight line.

A piece of equipment has been purchased by the city for Rs. 10,000 wit

1.	A piece of equipment has been purchased by the city for Rs. 10,000 with an anticipated salvage at Rs. 500 after 8 years. Which of the depreciation models will yield the greatest reduction in the book value of the equipment?
A.	Straight line depreciation
B.	Sum-of-years digits depreciation
C.	Declining balance depreciation
D.	Declining balance depreciation is switched to straight line.
Answer» E.

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A piece of equipment has been purchased by the city for Rs. 10,000 with an anticipated salvage at Rs. 500 after 8 years. Which of the depreciation models will yield the greatest reduction in the book value of the equipment?

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